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AI Shaping The Future Of Procurement

It is safe to say that AI will take over some of the routine roles within procurement. But what it cannot replace is strategical thinking.

How will AI and new technology shape the future of strategic sourcing and procurement?

I believe AI will take off some routine activities and daily operations from sourcing/procurement managers, in some areas even supporting logistics/inventory, however, strategical analysis, negotiations, strategical thinking will remain with the people. AI can’t negotiate with the internal stakeholders tender plan, vendor management, etc.

What can be done in order to develop effective SRM?

  • Effective spend analysis and understanding of internal needs and spends structure
  • Effective tendering process
  • Developing methodology, aligning business processes with business goals
  • Regular supplier’s assessment and review according to the methodology
  • Understanding of short-term and long-term plans (on both sides)

Futuristic vision of workforce required in procurement. What skills will be needed?

  • Strong analytical skills
  • Broad vision and readiness for challenges
  • Out of the Box thinking
  • Ability to communicate (with the suppliers and internal stakeholders)
  • will remain one of the main skills

Dmitry Shubenko is a Head of Central Procurement at Sberbank. Having vast experience in procurement in several business areas (IT, Industrial production, financial organisations) on different markets (Russia, EU), used to cover all commodities. Successfully created procurement organisations from scratch and improved several mature ones.

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